Financial freedom is much more than just having money. Just because we have money does not mean we have financial freedom. It is the freedom to be what we really are and do what we really want to do.
Being financially-free is a continuous process of Growth and Improvement. The true reward of financial freedom is gaining emotional strength to become more Powerful, more Happy and more Successful.
Having a secure financial life is not Rocket Science. You can take control of your situation, no matter what it is, and enjoy financial freedom.
Here are 10 fundamental principles to achieve Financial Freedom :
1). Spend less than you earn. Always make a perfect balance between your earnings and spending. Know your credit score, know your investments. Have a clear knowledge of what we are doing with the money.
2). Always have a budget. No matter how much money you have, If you don’t know where your money is going. You will never be financially healthy.
3). Buy things only that are really important. Avoid impulsive buying of anything.
4). Always practice saving. Saving should be made a continuous and regular habit. It is good if you can establish three saving funds
a. Emergency saving ( financial Emergencies or medical emergencies).
b. Long term saving ( long term goals like buying house or child education).
c. Short term saving ( short term goals like buying car or for a family holiday).
5). Manage credit cards with caution. Always remember credit cards are not same as cash. They carry high interest and fees. If you just pay-off minimum amount on your card, the remaining due is a very high interest debt. So spend with total caution. Always pay off your debt with highest interest first.
6). Try to build multiple sources of income. Explore your skills to make some extra income how ever small it maybe. whenever possible do little things yourselves which can save a lot of money.
7). Make sure you are properly insured.you should always be prepared for unexpected events in life.
8). Plan your retirement well and be happy when you grow older. Saving for retirement is a long-term goal, the sooner you begin the more comfortable you will be.
9). Hire an expert for filing your taxes. Filing taxes may be confusing ,so take advice of experts to get maximum benefits.
10). Invest wisely. Always remember investment is not ‘one-size fits all’. It is Tailor-made as every persons needs are different.We should always plan investments depending on our financial needs and goals. Always follow diversified investments. Diversified investments gives security and it is always crucial to save and build wealth for future.